Can Central Bank Backed currencies (CBDCs) use public or private networks?
Cryptocurrencies are private currencies dispensed from public chains to act as an alternative to fiat.
Bitcoin, Litecoin, Bitcoin Cash, DASH, Monero are examples.
They serve the same purpose as cash, with the only difference being their total supply.
As we now know, fiat has an infinite supply. Central banks can go berserk and mint trillions worth of dollars in the name of 'intervention' and monetary policy rescue operations.
Last year, in the depth of the COVID-19 pandemic, was a prime example.
But there have been complaints about their effects on inflation and its unwanted consequences.
Central banks are now jumping into the crypto bandwagon and are keen to launch CBDCs.
Just like China.
Their digital yuan is a good example and would soon launch.
The question is: Are CBDCs launching from a public chain?
CBDCs are nothing but digitized money that gives banks and governments even more power. Since they can track the movement of cash between wallets (via banks), it is possible to map out the identities of all transactions.
Enabling this will be a private network without cryptography integration for complete transparency.
So, CBDCs would be nice but not for your privacy.